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Annual Report for Fiscal Year 1957

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Annual Report for Fiscal Year 1957 Anual keporE oElie FEDERAL MARITIME BOARD and MARITIME ADMINISTRATION 9957 SMt OI CO O Q s SIg1ES Of UNITED STATES DEPARTMENT OF COMMERCE For sale by the Superintendent of Documents U S Government Printing Office wullinton 25 D C Price 25 cents paper ewer UNITED STATES DEPARTMENT OF COMMERCE SINCLAIR WEEKS Secretary Washington D C FEDERAL MARITIME BOARD CLARENCE G MORSE Chairman BEN H GUILL Member THOS E STAKEM Member TAMES L PIMPER Secretary MARITIME ADMINISTRATION CLARENCE G MORSE Maritime Administrator WALTER C FORD Deputy Maritime Administrator LETTERS OF TRANSMITTAL UNITED STATES DEPARTMENT Or COMMERCE FEDERAL MARITIME BOARD MARITIME ADMINISTRATION Washington 25 D C October 211957 To The Secretary of Commerce FROM CAairman Federal Maritime Board and Maritime Adminis trator SUBJECT Annual Report for fiscal year 1957 I am submitting herewith the report of the Federal Maritime Board and Maritime Administration covering their activities for the fiscal year ended June 30 1957 CLARFNCE G MORSE SECRETARY Or COMDIERCE Washington P5 D C To the Congress I have the honor to present the annual report of the Federal Mari time Board and Maritime Administration of the Department of Com merce for fiscal year 1957 Secretary of Commerce 111 CONTENTS Fiscal Year Activities Page INTRODUCTION 1 AID TO SHIPPING 4 Construction Differential Subsidy 4 Federal Ship Mortgage and Loan Insurance 6 Other Forms of Construction Aid 7 Operating Differential Subsidy 8 Aid to Vessels Over 20 Years of Age 9 Trade Routes 10 SHIP OPERATIONS 10 Demand for Ocean Shipping 10 Charters 11 General Agency Activities 12 Grain Storage 12 Port Development 12 Shi 13 Other Activities 13 SHIP CONSTRUCTION AND REPAIR 14 Nuclear Merchant Ship Program 14 Construction 15 Conversions 16 Technical Developments 17 Building Proposals 18 ShipRepair 19 SHIPPING STUDIES AND REPORTS 19 Special Studies 19 Ship Cargo and Labor Data 20 Labor Management Relations 20 MARITIME TRAINING 21 United States Merchant Marine Academy 21 State Maritime Academies 22 SHIP SALES AND TRANSFERS 23 Ship Sales 23 Transfers to Foreign Ownership andor Registry 23 PROPERTY AND SUPPLY 24 Shipyards 24 Terminals and Reserve Training Stations 25 Warehouses 26 Material Control Inventory and Disposal 26 Purchasing 27 ADMINISTRATIVE MANAGEMENT 27 Program and Defense Planning 27 Personnel 28 Organization and Methods 28 Security and Investigation 28 FINANCE 29 Financial Relationships With Contractors 29 Accounting 29 Audits 30 Internal Audits 31 Insurance 31 Notes and Accounts Receivable 32 Claims 32 V Page LEGAL ACTIVITIES 33 Legislation 33 Contracts 33 Litigation 34 REGULATORY ACTIVITIES 36 Conferences and Other Agreements 37 FreiForei 38 Freight United States Territories and Possessions 38 Terminals 39 Freight Forwarders 39 PROCEEDINGS BEFORE HEARING EXAMINERS 40 Final Decisions of the Board andor Administrator 40 Recommended Decisions of Hearing Examiners 42 Pending Proceedings 43 INTERNATIONAL MARITIME ArrAIRs 43 MUFRAWIN4111HU EXHIBITS 1 Balance SheetJune 30 1957 and 1956 46 2 Statement of Operations for the Years Ended June 30 1957 and 1956 48 3 Statement of Equity of the United States Government for the Years Ended June 30 1957 and 1956 49 4 Statement of Sources and Application of Funds for the Year Ended June 30 1957 50 NOTES To FINANCIAL STATEMENTsJune 30 1957 and 1956 51 SCHEDULES 1 Statement of Operations of National Shipping Authority for the Years Ended June 30 1957 and 1956 52 2 Statement of Operations of National Shipping Authority From Inception to June 30 1957 53 A Employment of United StatesFlag Merchant Ships as of June 301957 B Deliveries of New Merchant Ships During Fiscal Year 1957 5456 C Summary of Operating Differential Subsidy Agreements on June 30 1957 58 D Ships Approved for Transfer to Alien Ownership andor Registry and Flag fiscal Year 1957 58 EF MerchantNew Ship FleetsConstructionof the Worldon Juneas 30of June195730 1957 6059 G Cash and Approved Securities on Deposit in Statutory Capital and Special Reserve Funds of Subsidized Operators as at June 30 1957 62 Vi FISCAL YEAR ACTIVITIES Introduction Reorganization Plan No 21 of 1950 effective May 24 1950 abol ished the United States Maritime Commission and established the Federal Maritime Board and the Maritime Administration in the De partment of Commerce to perform the functions of the abolished agency The Federal Maritime Board is composed of three members ap pointed by the President by and with the advice and consent of the Senate The President designates one of such members to be the Chairman of the Board who also serves ex offacio as Maritime Admin istrator The plan transferred to the Federal Maritime Board the regula tory functions of the United States Maritime Commission and the functions with respect to making amending and terminating subsidy contracts and with respect to conducting hearings and making deter minations antecedent thereto under the provisions of titles V VI and VIII and sections 301 708 805 a and 805 f of the Merchant Marine Act 1936 as amended The Board in respect of the regulatory functions transferred to it by the plan is independent of the Secretary of Commerce In admin istering other functions transferred to the Board by the plan the Board is guided by the general policies of the Secretary of Commerce with respect to such functions The actions of the Board in respect of the subsidy functions transferred to it are final The Maritime Administration is charged with the administration and execution of shipbuilding shipping port development and other programs authorized by law Many of its actions are based on de terminations made by the Federal Maritime Board The Adminis tration carries out its functions under a delegation of authority from the Secretary of Commerce The Federal Maritime Board and the Maritime Administration during fiscal year 1957 continued to devote their resources to the ac complishment of their responsibilities under the maritime laws This legislation provides for the development and promotion of an Ameri can merchant marine sufficient to carry the domestic waterborne com merce and a substantial portion of the foreign commerce of the coun try capable of serving as a naval auxiliary in time of war owned by and operated under the United States flag by citizens of the United States and composed of the bestequipped safest and most suitable types of vessels manned by a trained and efficient citizen personnel Principally these efforts involved the administration of programs con cerning the 1 planned construction of new and replacement ships so phased as to meet the Nations current and future requirements 2 chartering of Governmentowned vessels from the reserve fleet to private operators to furnish sufficient tonnage at reasonable rates to agriculture and industry in the expanded traffic market 3 develop ment of new ship designs and variations thereof including those in volving nuclear propulsion as well as those for conventionaltype ships to assure continued technological progress necessary to an efficient and modern American merchant marine 4 administration of operating differential and construction differential subsidy insurance of loans and mortgages and other forms of Governmentaid programs designed by the Congress to effectively promote and assist the American mer chant marine and 5 improvements in management and efficiency of the agency In meeting the objectives of these programs the Federal Maritime BoardMaritime Administration continued to foster the basic prin ciples of providing for maximum private ownership and operation of the merchant marine with full initiative in its own development of the shipping business and the solution of maritime problems limiting Federal participation to the extent required to meet the countrys economic and national security needs and administering the coun trys maritime laws in an economical efficient and effective manner With respect to the ship construction program there was a con tinued increase in the number of ships placed under contract for con struction or conversion in United States shipyards Continuation of this program was essential to provide a modern balanced privately owned merchant marine capable of transporting a substantial por tion of the countrys commerce and assure the availability of a nucleus of ship construction knowledge and skills for utilization in event of mobilization The progress of this program is exemplified by the following 1 at the end of the fiscal year 1957 there was a total of 119 ships under construction conversion or on order in the United States shipyards providing in excess of 1250 million worth of work to the industry 2 contracts have been executed or are in process of negotiation with subsidized operators which will result in the replace ment construction of some 278 ships over a period of years at an esti mated construction cost of 3 billion 4 of these ships were under construction on June 30 1957 In connection with bareboat chartering activities the Federal Mari time Board authorized the charter to United Statesflag operators of up to 223 Governmentowned ships in the National Defense Reserve Fleet The Maritime Administrator subsequent to Board action al located 138 Liberty and Victorytype dry cargo ships to 27 different Americanflag operators The chartering of these ships plus those previously chartered furnished sufficient tonnage at reasonable rates to agriculture and industry in the expanded traffic movement of the year In addition the chartering of these vessels enabled the trans portation in United Statesflag
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